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Justice News

Department of Justice
U.S. Attorney’s Office
District of New Jersey

FOR IMMEDIATE RELEASE
Tuesday, August 13, 2019

Morris County Man Admits Role In Compounding Pharmacy Conspiracy

NEWARK, N.J. – A Morris County, New Jersey, man today admitted participating in a conspiracy to bill health insurance companies for medically unnecessary compounded prescriptions, U.S. Attorney Craig Carpenito announced.

Peter Frazzano, 46, of Randoph, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud.

According to documents filed in this case and statements made in court:

Frazzano admitted that from November 2014 through March 2016 he participated in a conspiracy to defraud health insurance plans, including the N.J. State Health Benefits plan, by knowingly causing the billing of fraudulent claims for medically unnecessary prescription compounded medications, such as scar creams, pain creams, and metabolic supplements. To ensure that a physician prescribed compounded medications regardless of medical necessity, Frazzano and a conspirator recruited a doctor to sign prescriptions ordering compounded medications without ever examining or interacting with any of the individuals who were to receive the medications.

The count to which Frazzano pleaded guilty is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. As part of his plea agreement, Frazzano must forfeit $270,751 in criminal proceeds and pay restitution of $2,727,292. Sentencing is scheduled for Nov. 19, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Vikas Khanna, Deputy Chief of the Criminal Division of the U.S.Attorney’s Office in Newark.

Defense counsel: Joseph Shumofsky Esq., Newark

Topic(s): 
Health Care Fraud
Component(s): 
Press Release Number: 
19-237
Updated August 13, 2019